TruAmerica has teamed up with Allstate to acquire Escondido, California-based Eagles Point Apartment Community. The price of the acquisition is about $90 million. TruAmerica is planning on investing “significant” capital to improve the property.
LOS ANGELES & SAN DIEGO–(BUSINESS WIRE)–In a joint venture with Allstate, TruAmerica Multifamily has made its biggest investment in San Diego County with the acquisition of the 519-unit Eagles Point Apartment Community in Escondido for approximately $90 million.
Escondido is one of the fastest growing cities in North San Diego County. Over the past five years, its population has grown by 6.3% percent and is projected to grow by an additional 5.4% by 2021, according to FastReport.
With fewer than 14,000 rental units and only two projects totaling 275 units in the construction pipeline, the city’s multifamily inventory is not close to keeping pace with its tremendous growth, according to Greg Campbell, TruAmerica’s Senior Managing Director of Acquisitions and Dispositions.
“Demand has far exceeded supply in Escondido driving vacancy rates to a little more than one percent,” said Campbell. “And most of the current inventory in the area is older and lacks the amenities desired by today’s renter.”
Eagles Point includes studio, one-, two- and three-bedroom apartments that have not been updated since they were built in 1985.
“The property has great infrastructure but lacked the reinvestment to make it relevant in today’s market,” added Campbell.
TruAmerica will invest significant capital to improve the property. The renovation plan — the largest in company history — includes refurbishing all interior units and upgrading the property’s two pools and spas, tennis courts, and clubhouse. Plans also call for a new fitness center to be incorporated in the existing clubhouse.
“With 1,600 units in our San Diego portfolio, we will be able to take advantage of economies of scale and in-house construction management expertise to transform Eagles Point into one of the most attractive communities in the submarket, and still keep rents in line for working families and individuals in the North County,” Campbell added.
Eagles Point benefits from being located across the street from the Walmart-anchored Vineyard Square Shopping Center, one of the major retail centers in Escondido. The property also is served by nearby Highway 78 and Interstate 15, providing easy access to downtown San Diego as well as the coastal communities of Carlsbad and Oceanside.
Allstate has now acquired more than 7,600 units through its joint venture with TruAmerica.
“We are excited to partner with TruAmerica on another terrific addition to our real estate portfolio. We believe assets like Eagles Point are both a great investment and a great way to support the community with high-quality yet affordable housing,” said Michael Moran, Vice President and head of Real Estate Investments at Allstate.
Troy Tegeler’s Newport Beach-based CBRE team arranged the project financing through Fannie Mae. CBRE’s San Diego-based team of Kevin Mulhern, Rachel Parsons and Dixie Hall marketed the property on behalf of the seller.
About TruAmerica Multifamily
TruAmerica Multifamily is a vertically integrated, value-add multifamily investment firm based in Los Angeles. Founded in July 2013 as a joint venture between Robert Hart and The Guardian Life Insurance Company of America, TruAmerica has been one of the country’s most active multifamily investors and manages a $6.7 billion portfolio of approximately 32,000 units across prime locations throughout Northern and Southern California, Washington, Oregon, Colorado, Arizona, Nevada, Utah, Maryland and Florida. For more information on TruAmerica Multifamily, visit http://www.truamerica.com or call (424) 325-2750.
The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer, protecting approximately 16 million households from life’s uncertainties. Allstate’s real estate investments group has decades of experience and looks for core and value-add opportunities across geographies in the United States and internationally, and in a range of investment vehicles, such as funds, co-investments and joint ventures. Allstate’s real estate investments include retail, multi-family, office and industrial properties. For more information on the company’s investments focus, visit www.allstateinvestments.com.